Consumer Trends and Price Growth Will Drive Gains in Food and Beverage Hydrocolloids

Gains will be supported by all-natural, organic, and non-GMO trends within the food and beverage markets. Rising average prices, fueled by feedstock restrictions and production bottlenecks, will also impact demand.

Key Findings in the Food & Beverage Hydrocolloids Study:

Plant and seed gums and extracts are forecast to account for nearly three-quarters of total demand, supported by their widespread use in food and beverage application, in particular cellulosics. The fastest growth will be seen for guar gum, supported by healthy growth in average prices arising from feedstock restrictions. Increasing production capacity and manufacturers’ efforts to tighten access to feedstocks will slow pectin price growth, restraining further gains in demand.

Growth for seaweed extracts is forecast to post above-average growth, with gains driven by rising prices for agar -- and to a lesser extent carrageenan and alginates -- resulting from restrictions in feedstock supplies. Growth in demand for carrageenan will slow, as concerns regarding the potential health impact of its consumption will restrain growth. The development of novel applications will help support moderate growth for alginates.

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